Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies. It may from time to time invest in larger or smaller (in particular, for investments in early-stage and/or venture capital-backed) companies. It invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and mezzanine debt, generally in a first lien position), second lien senior secured loans, and mezzanine debt, which in some cases includes an equity component. It invests in various industries, such as automotive services, business services, consumer products, and containers and packaging. Ares Capital Management LLC serves as its investment advisor.
Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
SymbolNASDAQ:ARCC
CUSIP04010L10
Phone212-750-7300
Debt
Debt-to-Equity Ratio0.71
Current Ratio0.99
Quick Ratio0.99
Price-To-Earnings
Trailing P/E Ratio11.91
Forward P/E Ratio10.42
P/E Growth3.52
Sales & Book Value
Annual Sales$1.16 billion
Price / Sales6.09
Cash Flow$1.4288 per share
Price / Cash11.59
Book Value$16.65 per share
Price / Book0.99
Profitability
EPS (Most Recent Fiscal Year)$1.39
Net Income$667 million
Net Margins65.81%
Return on Equity8.80%
Return on Assets5.05%
Miscellaneous
EmployeesN/A
Outstanding Shares426,300,000
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a quarterly dividend on Wednesday, May 2nd. Stockholders of record on Friday, June 15th will be given a dividend of $0.38 per share on Friday, June 29th. This represents a $1.52 annualized dividend and a dividend yield of 9.18%. The ex-dividend date of this dividend is Thursday, June 14th. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital declared that its board has authorized a share repurchase plan on Friday, April 7th 2017, which authorizes the company to repurchase $300,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its stock is undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) announced its quarterly earnings results on Wednesday, May, 2nd. The investment management company reported $0.39 EPS for the quarter, topping the Zacks' consensus estimate of $0.37 by $0.02. The investment management company had revenue of $317 million for the quarter, compared to analysts' expectations of $309.81 million. Ares Capital had a net margin of 65.81% and a return on equity of 8.80%. Ares Capital's revenue for the quarter was up 15.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.28 earnings per share. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
11 brokerages have issued 1 year price objectives for Ares Capital's shares. Their predictions range from $15.00 to $19.50. On average, they expect Ares Capital's share price to reach $17.9545 in the next year. View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. National Securities analysts commented, "• We had previously stated in our 1Q18 earnings note that Ares received Board approval to lower asset coverage. The company only discussed that they were continuing to evaluate options.
• We thus continue to expect a leverage passage increase sooner rather than later. Ares discussed in a press release last month on 4/2/18 that they intend to recommend moving ahead the recommendation to utilize the flexibility the new BDC leverage limitations provides.
• We think that given ARCC’s UMM focus along with utilization of the SDLP via expansion of the 30% basket under such a scenario make perfect sense for Ares.
• The ability to source and purchase significant amounts of low yielding, safer UMM credits that might only currently work in the JV but could potentially augment the balance sheet investments and would be simple for Ares as it has the ability to purchase substantial amounts of these loans and it does not deviate from the area of Ares’ primary focus currently in terms of large UMM borrowers. The sponsor relationships the company has also speak to the potential for Ares to originate more loans.
• We think that given the size of Ares, consistency of returns, and shareholder friendly actions carried out by the company to this point that it is also possible that they lower management fees, although we do not model that into our assumptions.
• Reduced fees would also portend to management getting votes to expedite when the increased leverage is available as we think cutting fees concomitant with increasing leverage so that more of the benefits flow through to shareholders would induce shareholders to vote yes. Being the largest public BDC currently, Ares also has significant institutional shareholder ownership relative to the sector who would more readily understand these benefits, in our opinion.
• As such we are making no changes to our estimates at this time given we think of all companies, the potential to go above 1:1 would work best for Areas given increasing the 30% basket and thus SDLP further and already doing larger, UMM loans hereupon what is currently passed on for price could make the ROE work." (5/15/2018)
- 2. According to Zacks Investment Research, "ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. " (5/3/2018)
Are investors shorting Ares Capital?
Ares Capital saw a increase in short interest in May. As of May 15th, there was short interest totalling 4,003,043 shares, an increase of 51.7% from the April 30th total of 2,638,438 shares. Based on an average daily trading volume, of 1,949,401 shares, the days-to-cover ratio is currently 2.1 days. Currently, 0.9% of the shares of the stock are sold short. View Ares Capital's Current Options Chain.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), Tian Ge Interactiv (TGRVF), Golub Capital BDC (GBDC), New Mountain Finance (NMFC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Arlington Asset Investment (AI), Capital Southwest (CSWC), Safeguard Scientifics (SFE), THL Credit (TCRD), Oaktree Strategic Income (OCSI), TRIPLEPOINT VEN/COM (TPVG) and Stellus Capital Investment (SCM).
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Michael J. Arougheti, Co-Chairman of the Board (Age 44)
- Bennett Rosenthal, Co-Chairman of the Board (Age 53)
- Mitchell Goldstein, Co-President (Age 50)
- Michael L. Smith, Co-President (Age 45)
- R. Kipp deVeer III, Chief Executive Officer, Director (Age 44)
- Penelope F. Roll, Chief Financial Officer (Age 51)
- Scott C. Lem, Chief Accounting Officer, Vice President, Treasurer (Age 39)
- Miriam G. Krieger, Chief Compliance Officer (Age 40)
- Joshua M. Bloomstein, Vice President, General Counsel, Secretary (Age 43)
- Michael R. McFerran, Vice President, Assistant Treasurer (Age 45)
Has Ares Capital been receiving favorable news coverage?
News coverage about ARCC stock has been trending somewhat negative this week, according to Accern Sentiment. Accern identifies negative and positive media coverage by monitoring more than twenty million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Ares Capital earned a media sentiment score of -0.07 on Accern's scale. They also assigned media headlines about the investment management company an impact score of 46.89 out of 100, indicating that recent media coverage is somewhat unlikely to have an impact on the stock's share price in the immediate future.
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by a number of of retail and institutional investors. Top institutional shareholders include Thornburg Investment Management Inc. (3.55%), Muzinich & Co. Inc. (1.61%), Vaughan Nelson Investment Management L.P. (1.37%), OMERS ADMINISTRATION Corp (0.63%), Bruni J V & Co. Co. (0.57%) and Van ECK Associates Corp (0.52%). Company insiders that own Ares Capital stock include Michael J Arougheti, Mitchell S Goldstein, Penelope F Roll and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which institutional investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Muzinich & Co. Inc., State of New Jersey Common Pension Fund D, Barclays PLC, Thornburg Investment Management Inc., Freestone Capital Holdings LLC, Loomis Sayles & Co. L P, New South Capital Management Inc. and Alps Advisors Inc.. View Insider Buying and Selling for Ares Capital.
Which institutional investors are buying Ares Capital stock?
ARCC stock was purchased by a variety of institutional investors in the last quarter, including Millennium Management LLC, CNO Financial Group Inc., OMERS ADMINISTRATION Corp, PL Capital Advisors LLC, Algebris UK Ltd, Jacobs Asset Management LLC, Legal & General Group Plc and Natixis Advisors L.P.. Company insiders that have bought Ares Capital stock in the last two years include Michael J Arougheti, Mitchell S Goldstein, Penelope F Roll and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $16.56.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.14 billion and generates $1.16 billion in revenue each year. The investment management company earns $667 million in net income (profit) each year or $1.39 on an earnings per share basis.
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
